16.12.202509:19:50UTC+00Euro Area Composite PMI Disappoints in December

In December 2025, the HCOB Flash Eurozone Composite PMI decreased to 51.9, marking its lowest point in three months. This decline comes after a previous reading of 52.8 in November, falling short of the anticipated 52.7. The data suggest a deceleration in private-sector activity, primarily due to reduced momentum in the services sector, which dropped to 52.6 from 53.6, alongside continuing challenges in the manufacturing sector, which declined to 49.2 from 49.6. Growth in new orders slowed, largely attributed to a significant reduction in foreign demand, although companies maintained an upward trend in staffing levels for the third month in a row. On the pricing front, there was an intensification in both input cost inflation and output price pressures. Business confidence as a whole weakened, mainly due to a substantial drop in optimism among service providers, which overshadowed a more optimistic outlook in the manufacturing sector. Nevertheless, despite the slowdown in December, business activity in the eurozone achieved a complete year of expansion for the first time since the onset of the COVID-19 pandemic.